PTIN fee officially lowered

The IRS has published final regulations that adopt without change the reduction of the user fee to apply for or renew a preparer tax identification number (PTIN) from $21 to $11, not including the contractor fee. (TD 9997) The final regulations are effective 30 days after the date of the final regulation’s publication in the Federal Register. The contractor fee is $8.75 (reduced from $9.75 in 2023).

In 2023, the IRS released proposed regulations that reduced the user fees paid by tax preparers to obtain a PTIN. (TD 9980) The IRS devised a new cost model for calculating the PTIN fee following the decision in Steele v. United States ((September 25, 2023) U.S. District Court, District of Columbia, Case No. 1:14-cv-1523-RCL), which determined that the PTIN fee the IRS was charging preparers was too high.